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Sending Money to India from Germany
Transfer services compared, RBI rules explained, and scenario guides for students, professionals, and families.
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Disclaimer: This page is for general informational purposes only and does not constitute financial, legal, or professional advice. We are not licensed financial advisors. All figures shown are approximate and may change. Always consult a qualified financial advisor and verify with official sources such as bafin.de, bundesfinanzministerium.de, or your local Finanzamt before making any financial decisions.
🟢Wise
formerly TransferWise
Best forMost transfers under €10,000
Speed1–2 business days (usually instant to major Indian banks)
Fee~0.4–0.7% of amount (mid-market rate, no markup)
RateMid-market rate (real rate, no hidden spread)
- •iOS/Android app, supports standing orders
- •IBAN for receiving EUR
- •Widely trusted in expat community
🔵SWIFT Bank Transfer
via your German bank
Best forVery large amounts (>€20,000), when speed doesn't matter
Speed2–5 business days
Fee€15–35 flat fee + 1–2% exchange rate spread
RateBank's rate (usually 1–2% worse than mid-market)
- •Most secure for very large amounts
- •Your bank has full records
- •Needed for some official purposes
🟣Remitly
Economy & Express options
Best forSmaller, urgent transfers; first-time senders
SpeedExpress (minutes for extra fee) or Economy (3–5 days)
FeeEconomy: €0 fee but slightly worse rate. Express: ~€1.99–3.99
RateSlightly below mid-market
- •Good for first transfer (often promotional rate)
- •Supports UPI and bank transfer in India
- •Simple app
🟡Western Union / Moneygram
cash pickup option
Best forRecipients without bank accounts (cash pickup), small amounts
SpeedMinutes (cash pickup) or 1–3 days (bank)
FeeHigher than Wise — typically €5–15 flat fee + worse rate
Rate1.5–3% below mid-market
- •Physical agent locations in India
- •No Indian bank account needed
- •NOT recommended for regular transfers due to cost
Which service should I use?
Match your situation to the best option below.
Regular monthly transfer
Wise standing order
Large one-time transfer (>€20,000)
SWIFT from your bank
Urgent small transfer
Remitly Express
Recipient has no bank account
Western Union cash pickup
Receiving Money from India (Parents Sending You Money)
India Side, LRS Rules
- • Parents can send up to USD 250,000 per person per financial year under the Liberalised Remittance Scheme (LRS) for education and maintenance
- • No RBI permission needed within this limit
- • The bank in India will complete an A2 form on their behalf — this is routine
TCS (Tax Collected at Source)
- • From October 2023: remittances above INR 7 lakh/year attract TCS
- • Education funded by loan: 0.5% TCS
- • Education funded from savings: 5% TCS
- • TCS is NOT an extra tax, it is advance tax credit that parents can fully reclaim when filing their Indian income tax return (ITR)
German Side
- • Money received from parents for living costs and education is not taxable in Germany
- • No need to declare it on a German tax return
Best Method
- • Ask parents to use Wise or their bank's SWIFT
- • Wise gives better rates and is familiar to most Indian banks
- • Arrives in your German IBAN within 1–2 days
Sending Money Back to India (Pocket Money, Gifts)
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No limit from the Germany side for occasional transfers.
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Amounts over €12,500 in a single transfer require a Bundesbank statistical report — your bank handles this automatically. It is routine, not a problem.
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Gift tax in India: Gifts received from close relatives (parents, siblings) are fully exempt in India regardless of amount. From others, amounts above INR 50,000/year are taxable in India as income.
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Blocked account holders (Fintiba / Coracle): The blocked account is only for visa purposes, once your visa is approved and you arrive, you can freely transfer money to Indian accounts from your regular German bank account.
1. What counts as a “dependent” for German tax purposes
Under §33a EStG, you can deduct maintenance payments to dependents abroad if the following conditions are met:
- ✓The person is legally unable to support themselves (elderly parents, disabled family member)
- ✓You are legally or morally obligated to support them
- ✓They have no significant income of their own
The maximum deduction in 2026 is €11,784 per dependent per year, reduced proportionally if the dependent has their own income. You can claim for up to 2 parents if both meet the criteria.
2. Required Documentation
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Statutory declaration
Eidesstattliche Erklärung by the dependent confirming they need support
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Bank transfer records
Showing money was actually sent, Wise or SWIFT receipts organised by year
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Relationship proof
Birth certificate or family register from India — get an apostille
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Income certificate
Local certificate from panchayat or municipality confirming the dependent has no significant income. May need certified translation into German.
3. How to Send the Money Correctly for Deduction Purposes
- •All transfers must be by traceable bank transfer, no cash, no hawala.
- •Use Wise or SWIFT — both leave a clear paper trail.
- •Keep all transfer receipts organised by tax year.
- •The amount sent does not need to exactly equal the deduction claimed, the deduction is capped at €11,784 regardless of how much you send.
4. Indian Gift Tax for Receiving Family
Gifts received from children abroad are fully exempt from Indian income tax regardless of amount (close relative exemption). Recipients do not need to declare it as income in their Indian ITR.
However, if the property or assets purchased from the gift later generate income (e.g. rental income), that income is taxable in India.
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The parental support deduction is one of the most valuable India-specific deductions and one of the least claimed. If you support your parents in India, speak to a Steuerberater who handles international cases — it could reduce your German tax by €3,000–5,000/year depending on your tax bracket.
| Service | Fee | Rate | Speed | Best For |
|---|---|---|---|---|
| Wise | ~0.4–0.7% | Mid-market | 1–2 days | Regular transfers, best overall |
| SWIFT (your bank) | €15–35 flat + spread | 1–2% below market | 2–5 days | Large one-time transfers |
| Remitly Economy | €0 fee | Slightly below market | 3–5 days | Occasional small transfers |
| Remitly Express | €1.99–3.99 | Slightly below market | Minutes–hours | Urgent transfers |
| Western Union | €5–15 + spread | 1.5–3% below market | Minutes | Cash pickup, no bank account |
Pro Tips
- 1.Always compare on the day of transfer, rates fluctuate daily.
- 2.Use Wise Rate Alerts to set a target rate and get notified when it is reached.
- 3.For amounts over €5,000, even a 0.5% rate difference means €25+ in savings — compare before sending.
- 4.N26 and DKB bank accounts often have partnerships with Wise built in, check your bank app before opening a separate Wise account.
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Germany Side
- ✅No limit on sending money abroad from Germany.
- 📋Single transfers >€12,500: Bundesbank statistical declaration required, your bank handles this automatically. Routine, no cost.
- 🎁Gift to non-relatives: German gift tax applies. Allowances: €20,000 per person per 10 years (non-relatives), €500,000 (spouse), €400,000 (parent-child).
- 🌐FATCA/CRS: Germany shares financial data with India under CRS — large Indian deposits will be visible to German tax authorities.
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India Side, RBI/FEMA
- 💰LRS limit: USD 250,000 per person per financial year for permissible purposes.
- 🧾TCS from October 2023: 20% TCS on remittances >INR 7 lakh/year (except education with loan: 0.5%, education from savings: 5%). TCS is refundable via ITR.
- 🏦NRE accounts: fully repatriable — no limit to bring money back to Germany.
- 🏦NRO accounts: repatriation up to USD 1M/year with Form 15CA/15CB from a CA.
- 🏠Property sale proceeds from India: can be repatriated subject to FEMA rules, requires CA certificate.
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The 20% TCS on LRS remittances looks alarming but it is NOT an additional tax, it is advance tax deducted at source by the Indian bank, which your parents can fully reclaim by filing their Indian income tax return (ITR-1 or ITR-2). Ensure parents file their ITR to claim the refund.